Why become a mortgage broker

icklejulez · 22 April 2007 at 2:42PM

Every time there is a thread that interests me on mortgage advisors etc why do people have to start bickering and get the thread closed. If someone is not happy can they not simply just not read the thread? This is getting rather annoying now and ruining the purpose of this site.

homer_j_3 · 22 April 2007 at 2:44PM

Please stop posting Mr Helpful, I have absolutely no interest in what maurice is going to do just as I am sure Martin will not want you discussing any potential action in a public forum.

You are nothing but a troublemaker as far as I can see it.

You could of quite easily pm'd kenshaz and asked him to remove the post or the mods if he had refused and then kept quiet and let this post run its course. But no you have to make a public scene, show who has the biggest you know what and try to boost your ego. I don't think I could blame Kenshaz for any response he may make to your actions because you are clearly out for him. Don't think for one moment by being like this you are getting respect for it.

kenshaz · 22 April 2007 at 2:52PM

Mr_helpful wrote: »

Its been reported to abuse so we will wait for what happens. I think Maurice is also going to email Martin direct with a complaint for starters.

How do you know that ''Maurice'' is going to email Martin and why have you got ''Maurice'' s website in your profile ,the plot thickens .Andy is correct this is all so funny,and why have you hi-jacked this thread.

If you have reported something to the mods ,why are you continuing your threats.

I would also like to inform you that the threats that you are making on behalf of some-one else are abusive and unsubstantiated.

I have decided to listen to Homer-j and other advisers who have suggested that continuing in a similar vein is unproductive and I therefore decided not to comment further on this subject .

JoeK_3 · 22 April 2007 at 5:02PM

HelpWhereIcan wrote: »

I am still amazed that some of my ex collegues and competitors do not realise the importance of a proper system in place. They are very likely to lose in any battle for customer service and retention with me as the system ensures I don't forget anyone or any of their details.

This is an excellent point.

The job of a mortgage broker has now become so difficult with regards to compliance and and paperwork that anyone that has not moved on to electronic trading will find that they can only produce so many cases a week and that's it.

After which they then have to employ expensive back up administrators.

Roll on the mortgages common trading platform and then we can comfortably write two mortgage cases a day, plus protection.

JoeK

Madjock · 22 April 2007 at 5:03PM

getting back to the topic, my co has an average of 30 mortgage advisors at any one time and we currently have 3 f/t, 2p/t and 2 trainee administrators for an average pipeline of £200k per month. We are always busy, sometimes extremely so, depending on the time of month and the volume of telephone calls. I would estimate that probably 40% of our business is adverse, so that also has an effect on how much work we have to do of course.

JoeK_3 · 22 April 2007 at 5:11PM

Madjock wrote: »

getting back to the topic, my co has an average of 30 mortgage advisors at any one time and we currently have 3 f/t, 2p/t and 2 trainee administrators for an average pipeline of £200k per month. We are always busy, sometimes extremely so, depending on the time of month and the volume of telephone calls. I would estimate that probably 40% of our business is adverse, so that also has an effect on how much work we have to do of course.

That's good news and I can't beleive the ratio of advisers to administrators being so low.

Does your company submit cases electronically?

Looking at it from my perspective, 200pm cases divided by 30 advisers = 3 cases each per month, each.

Is that good?

JoeK

terese · 22 April 2007 at 5:29PM

What do mortgage advisers do? apart from sending your details to lenders and get back the decision to the customer?

jamesd · 22 April 2007 at 5:54PM

JoeK wrote: »

Does that mean that as procuration fees will be squeezed by lenders, we will see the death of the 'no fees' mortgage broker?

The ticket booking side of travel agency went like this:

Third party online sales introduced
Proc fees reduced
Own web systems introduced
Proc fees reduced further for web sales
Proc fees eliminated for some sales by some airlines
Charges for non-web bookings by consumers introduced by some providers

Basically, as the providers' own systems matured they edged out many of the people in the middle and favored their own systems.

In the mortgage business there's some real incentive to remove brokers to get higher customer loyalty (more likely to stay on SVR than if using a broker) and more control of the relationship long term.

Lots of travel agents went for the business pay the agent to save time and money market. I wasn't tracking closely enough to know how that turned out for them. Worth a chat or two with long-established travel agents to see how they survived the transitions. My guess is lots of value add and add-on product sales.

Wait for the time when all the major suppliers have excellent home-grown web systems in place to handle the mortgage work, including price-matching electronic "surveys" so they can offer immediately (not just AIP) on lower LTV business and get the sale sown up themselves, with a major change of property condition get-out clause.

Sub-prime looks more interesting, until I take a look at the lender systems which select the products the client qualifies for from their whole range. What's lacking there is any obligation to present the best product if the client was using this direct, so brokers still have a role in identifying deliberately sub-optimal lender recommendations. Give third parties the information to do this, including unreported credit check, with the requirement to provide best offer, and life gets interesting.

The unreported credit check is also a requirement for greater liquidity in the loans market, since the lack of it discourages consumer shopping around.

UK007BullDog · 22 April 2007 at 6:20PM

terese wrote: »

What do mortgage advisers do? apart from sending your details to lenders and get back the decision to the customer?

We have to do this:

Check the clients status, i.e. passport, check that what they tell us is true, every client is different so have to listen to clients needs, requirements and also how they want to plan their future plans, sourcing of the right product and lender, calling up lenders if they are willing to lend on that type of proeprty or the type of client.
checking their documents, money laundering checks, taking their many details down into a factfind, entering the details into multiple lenders web sites factfinds if the original choice is unwilling to lend. then chasing the application through the lender to the surveyor and the client plus solicitor. Call to the lenders underwriter to find out if there are any holdups and why. Chasing surveyor and clients, RTB = chasing the councils to move quicker.
presenting/explaining the offerletter to the client.
then its just basic chasing. maybe also some protection sales and chasing of those as well. packaging the whole lot of docs to send to the lender.
Adverse lending or type of property can mean a lot of calls to lenders underwriters to reconfirm if they will lend.

So there is a lot more than just filling out a form and sending it in.

JoeK_3 · 22 April 2007 at 6:29PM

jamesd wrote: »

The ticket booking side of travel agency went like this:
Third party online sales introduced

Proc fees reduced

Own web systems introduced

Proc fees reduced further for web sales

Proc fees eliminated for some sales by some airlines

Charges for non-web bookings by consumers introduced by some providers

Basically, as the providers' own systems matured they edged out many of the people in the middle and favored their own systems.

In the mortgage business there's some real incentive to remove brokers to get higher customer loyalty (more likely to stay on SVR than if using a broker) and more control of the relationship long term.

Lots of travel agents went for the business pay the agent to save time and money market. I wasn't tracking closely enough to know how that turned out for them. Worth a chat or two with long-established travel agents to see how they survived the transitions. My guess is lots of value add and add-on product sales.

Wait for the time when all the major suppliers have excellent home-grown web systems in place to handle the mortgage work, including price-matching electronic "surveys" so they can offer immediately (not just AIP) on lower LTV business and get the sale sown up themselves, with a major change of property condition get-out clause.

Sub-prime looks more interesting, until I take a look at the lender systems which select the products the client qualifies for from their whole range. What's lacking there is any obligation to present the best product if the client was using this direct, so brokers still have a role in identifying deliberately sub-optimal lender recommendations. Give third parties the information to do this, including unreported credit check, with the requirement to provide best offer, and life gets interesting.

The unreported credit check is also a requirement for greater liquidity in the loans market, since the lack of it discourages consumer shopping around.

That's fantastic feedback and I thank you for it.

Lenders are already starting the ball rolling as we have encountered recently.

Northern Rock have approached clients introduced to them and re-written the mortgage case and life insurance that we arranged.

Further to this Bristol & West have just done something similar.

We have reported NR to the FSA for taking the client out of whole of market to tied.

We are awaiting the results.

JoeK

Why become a mortgage broker

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